THE IRS HAS TAKEN MY TRANSACTIONS VIA PAYPAL AND IDENTIFIED THEM AS TAXABLE INCOME

watching this i can only say -- see an accountant. This is basic accounting. You need costs/bases, revenues and the difference.  Clio noted the threshold, which you may or may not have met.
G

This country is broke . when are you guys going to realize that. were seeing massive inflation right now because its the only way they can handle the debt problem , its not transitory like the secretary of the debt said , you haven't seen nothing yet , this is not the forum to talk politics or economics but since you brought it up here we are. Buy your HIFI gear now and save because tomorrow you'll pay double. Biden is your man he will fix everything he's so great !! I cant wait for him to keel over on live tv im going to get the popcorn out. Just enrolled my child into private school cause of the absolute BS there teaching these children. The masses think everything is normal because they dont know any better , things are NOT ok wake up you idiots. The IRS needs money and they will be cracking the whip your just getting a little taste of what's to come. 

The irs can only see the transaction that was reported to them. If this is for the sale or equipment you can apply the basis rule. Lets say you bought a piece of equipment for $10,000 and sold it for $8,000. The irs sees the $8000 sale not the purchase of $10,000. All you need to do is report said sale as a $2000 loss and produce the receipt of original purchase. If you have also sold equipment where you made money from your original purchase you will be able to use the loss from other sales to offset this gain. What if you don’t have receipts? Just report what you think it was and best rule with the irs ( which is the criminal collection division of the dc cartel) report at least a small gain say $250 and pay the tax on that amount. Just make sure the amount you report does not move you into the next bracket and impact your cap gains on investments or you social security taxation.

@nickaboy1

you are just touching the tip of the tip of the tip of this iceberg. Right on brother my children are in private school too!

PayPal also sent you a 1099 as the law requires them to if you have over 200 transactions and over $20,000 of proceeds. Both have to be true. PayPal does not mail the 1099, but you need to look online. Look under activities - statements - tax documents. If none are there, then PayPal did not generate one and the IRS did not receive one from PayPal. If the IRS has a 1099 from PayPal and your online account does not show one, then the IRS has asked for it outside the normal guidelines. 
The IRS is going after bigger fish as they don’t have the resources to go after 4 small transactions. I am sure your 1billion dollar business is the sole reason this is happening. The IRS may have asked PayPal for it as they are looking closer a folks they deem big fish.  
Just my thoughts based on what you have shared.